Hanoi real estate market cools as land prices fall and sales slow

Transaction activity in Hanoi’s property market has turned cautious after recent government measures and higher borrowing costs. In districts that previously saw rapid price spikes linked to new planning and infrastructure projects, sales now take weeks or months to close and prices have largely stalled or softened. Developers report that the volume of land‑sale transactions is about half of the peak period, and many landowners are forced to negotiate lower prices to obtain liquidity.

Peripheral land parcels are seeing sharp declines. Investors citing recent listings note price cuts of several hundred million to over a billion Vietnamese dong per lot, with some plots now priced around 25 million VND per square metre – a drop of 20‑30 % from the 2025‑2026 highs. Despite the reductions, buyer interest remains weak and market liquidity stays low. Mortgage rates stay high at roughly 8.5‑10 % for preferential loans and 11‑15 % for floating rates, adding pressure on both buyers and developers.

In response, developers are shifting from price‑raising races to strategies aimed at preserving cash flow, such as offering interest‑rate support, payment deferrals, discounts, or furnishing packages. New apartment supply is rising, with about 8,800 units launched in Q1 2026, intensifying competition in the residential segment.